"The FCA does not expect to make any significant changes to these rules before they are finalised in June this year, and therefore firms should not delay."
The FCA agrees that the business model of many firms means that "a full taping obligation may not always be appropriate".
The FCA will now allow retail financial advisers to comply with the ‘at least analogous’ requirement by either taping all relevant phone conversations or taking a written note.
The regulator is now urging firms impacted by MiFID II changes to apply for authorisation or for variations of permission, or risk being unable to operate in the UK market after 3 January 2018, when MiFID II takes effect.
In June, the FCA plans to finalise the MiFID II rules in a further policy statement. This will cover remaining issues which include conduct of business, perimeter guidance, and client asset protections.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said: “MiFID II introduces substantial and wide ranging measures designed to improve investor protection and promote market integrity.
“Some firms will need to be authorised for the first time, others will need to vary their current permissions.
“It is critical that those firms submit their applications now. The FCA does not expect to make any significant changes to these rules before they are finalised in June this year, and therefore firms should not delay.”
